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Approval Force Fuel & Force Fuel Property Business Rescue Plans, Proposed Disposal & Renewal of Cautionary
LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/001616/06)
JSE code: LAB ISIN: ZAE000018354
(“Labat”, “the Group” or “the Company”)
APPROVAL OF THE FORCE FUEL (PTY) LTD AND FORCE FUEL PROPERTIES (PTY) LTD BUSINESS
RESCUE PLANS, PROPOSED DISPOSAL OF FORCE FUEL AND FORCE FUEL PROPERTIES AND
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Introduction
Shareholders are referred to the announcements released on SENS on 21 July 2020 advising
affected persons of the publication of the Force Fuel (Pty) Ltd (“Force Fuel”) and Force Fuel
Properties Pty) Ltd (“Force Fuel Properties”) business rescue plans (together, “the Business
Rescue Plans”) and giving creditors and other holders of a voting interest notice that the
meetings of creditors and other holders of a voting interest in both of these companies in
accordance with the terms of Section 151 of the Companies Act, 2008 (71 of 2008) (“section
151 meeting”) will be held on Friday, 24 July 2020 for the purpose of considering the
respective Business Rescue Plans.
Approval of the Business Rescue Plans
The Business Rescue Practitioner (“BRP”)of both Force Fuel and Force Fuel Properties
(together, “the companies”) determined that with respect to each company, such
company cannot continue trading without capital investment into the company which will
be used to pay certain of the creditors and providing new working capital for each business.
As a result, the Business Rescue Plans provided creditors with an opportunity to vote on the
following two options as set out in part B of the Business Rescue Plan of each of Force Fuel
and Force Fuel Properties:
• Option 1, which contains a plan to conclude a bidding transaction with a new
investor and provides, inter alia, that as part of the restructure of the Statement of
Affairs of the respective companies, a bidding process will be entered into with the
objective of securing a new investor to attract new capital by way of a subscription
of shares and working capital facilities for the company (“Option 1”); or
• Option 2, which provides for the wind down of the company and a sale of assets
(“Option 2”).
Shareholders are advised that at the respective section 151 meetings, Option 1 as detailed
in the Business Rescue Plans was unanimously supported by creditors and affected parties
of the companies.
Potential Transaction to Dispose of Force Fuel and Force Fuel Properties
Following the approval of the Business Rescue Plans, an open bidding process for potential
investors commenced on Monday, 27 July 2020 and will be conducted as detailed in the
Business Rescue Plans, with potential investors being required to submit their final bids on or
before Tuesday, 18 August 2020.
Shareholders are reminded that the reason for Force Fuel Properties having been placed
into Business Rescue is that it is inextricably linked to Force Fuel as the Force Fuel operations
take place on the properties owned by Force Fuel Properties and the properties stand as
security for the loans made by Standard Bank to Force Fuel. As such, the Business Rescue
Plans envisage that a transaction in accordance with the provisions of Option 1 of the
respective business rescue plans will be one indivisible transaction.
Shareholders are accordingly advised that as potential investors will be required to make
an offer that is equivalent to or more than the asset value of as reflected in the separate
balance sheets of the companies, the implementation of Option 1 will, in accordance with
paragraph 3.35 of the JSE Listings Requirements, at a minimum, result in a Category 2
disposal transaction being concluded by Labat.
Further details of the anticipated disposal including the final terms thereof, will be
announced following the final evaluation of the bids received, which is expected to be on
or before Wednesday, 26 August 2020.
General Information Relating to the Business Rescue Process
Creditors of Force Fuel and/or Force Fuel Properties who have not submitted a claim and
still wish to do so may obtain a copy of the relevant claim forms from the BRP. Claim forms
should be completed and returned to the BRP at:
ForceFuelBusinessRescue@sagacity.org.za in respect of claims against Force Fuel and at:
ForceFuelPropertiesBR@sagacity.org.za in respect of claims against Force Fuel Properties.
Should there be a need to contact the directors of Force Fuel, Mr Gorden Walters may be
contacted at gorden@forcefuel.co.za.
Renewal of Cautionary Announcement
Shareholders are accordingly advised to continue to exercise caution when dealing in the
shares of the Company until the full details of the anticipated disposal of Force Fuel and
Force Fuel Properties have been published.
For and on behalf of the Board
Johannesburg
30 July 2020
Sponsor
ARBOR CAPITAL SPONSORS
Date: 30-07-2020 03:21:00
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